Fed Boosts Pressure on Banks Over Capital Levels

Regulator Spells Out Expectations on Exceeding Minimum Requirements

By

Michael R. Crittenden

Updated Aug. 19, 2013 8:03 p.m. ET

WASHINGTON—The Federal Reserve said some of the largest U.S. banks are stumbling in efforts to assess their own potential risks and financing needs, raising the possibility that banks could be pushed to increase their capital or curtail dividends and share buybacks to satisfy regulators.

Most large banks have made progress in evaluating and preparing themselves to withstand a severe economic downturn, the Fed said in a study released...